So you have decided to try yourself in the world of Stock Market but are looking to taste the waters initially. That makes sense. It is advised to take baby steps initially, understand and learn how the market dynamics work before taking a full plunge into the market. Before you start looking for the best stock broker in the country, list down your personal preferences and expectations from the broker.
Generally some of the basic requirements of someone beginning to trade in the stock market or looking for small investment are:
Initial education on trading and stock market basics
Low brokerage charges
Assistance on market research and intraday tips
Highly usable trading platforms with rich user experience
You can find details on the top full serviceand discount stock brokers on our website. However, here we are listing down some of the stock brokers that suit well specifically to beginner traders or anyone who is looking to make small investments in the market. This list has been narrowed down on the basis of stock broker’s inclination towards entrant clients with focus on client education, technology innovation along with staying economical for the clients. To be complete transparent to our audience, we have also listed out a concern or two that might affect beginners or small investors at the same time.
List of 5 Best Demat Account for Beginners
ICICI Direct is one of the top financial services companies in India providing an array of services including stock trading. Beginners looking to start trading can easily get started by opening a demat and trading account with ICICI. With the 3 in 1 demat account by ICICI, clients don’t need to open multiple accounts for trading and fund management separately.
The advantages ICICI Direct provides to its beginner clients are:
It takes away the regular fuss of funds transfer between trading and bank accounts.
Being a huge brand, ICICI provides wide physical presence across the country through its sub-broker and franchise networks
One of the concerns, however, is its relatively higher brokerage charges.
5Paisa is one of those stock brokers that has seen the quickest growth in terms of offerings and values brought to its clients. Backed by India Infoline (IIFL), 5Paisa comes under the umbrella of reliable stock brokers in the country. Some of the top USPs of 5Paisa include:
Offers very low brokerage charges at ₹10 per executed order
By depositing an initial margin of ₹25,000 clients can get away from account opening and annual maintenance charges and get it for free.
Even though 5Paisa is a discount stock broker, it offers free research tips and recommendations which are very much necessary for beginners and small investors.
Provides different trading platforms across devices including mobile trading app, reliable browser application – Trade Station and a terminal based software.
The only concern with 5Paisa is that its browser based application is not responsive in nature.
Zerodhais the pioneer of discount broking in India. It actually took stock broking space by surprise by introducing the concept of discount broking where they charge nothing for equity delievery and fixed brokerage for other financial segments at ₹20 per executed order. Some of the reasons for which Zerodha suits well for beginners and small investors are:
Low brokerage charges take away that financial burden away from users looking to enter into trading for the first time.
Comprehensive education repository Zerodha Varsity allows beginners to learn about stock market basics and intermediate understanding.
With TradingQnA portal, small investors can take cues from other fellow traders and investors to take a judgement for their protfolio.
The concern with Zerodha stays on the fact that they do not provide any market research or tips to its clients as full service brokers do.
Sharekhan is one of the top known brands in full service stock broking space. It is known for its flexibility and coverage in the number of financial segments it allows its clients to trade in. Being a full service broker, Sharekhan provides regular research reports, market tips and recommendations to its clients. This can be a great help for some beginners who would prefer to go ahead with the stock broker’s advice.
Here are some of more advantages Sharekhan puts in for its small investors and beginner traders:
Huge physical presence with 170 branches and 2200+ franchise partners across 575 cities of the country.
Advanced tech trading platforms such as Trade Tiger with high performance allow clients to trade with ease and comfort.
Promising team of research experts.
Sharekhan is known to charge pretty high brokerage charges across segments and that stays as the main concern of opening a demat account with it.
Angel Broking is one of the leading full service brokers in India. It is known to be one of those stock brokers that provide descent value in any every aspect related to broking. Like Sharekhan, Angel broking is also a full service broker and thus, provides research reports and tips to its clients. Experts from Angel broking can be seen frequently on business channels such as CNBC Awaaz or NDTV Profit. Some of the reasons, we think, beginners and small investors might want to go ahead with Angel Broking are:
High tech advanced trading platforms such as Angel Eye and Angel Broking mobile app
ARQ, an investment engine that takes away any human projections out of the window and brings automated stock performance tips for the future
High coverage across the country with its sub broker and franchise network. In fact, Angel broking is ranked second in its geographical coverage across the country.
For beginners, the only concern may be its customer service which is okayish and is not one of the best. However, you have to see whether you would need much of it anyway.
Once you are sure about which stock broker suits to your needs the best, then to open a demat account, you just need to following documents:
PAN Card (mandatory document)
In the end, we would just like to reiterate on the fact that there is nothing like a “Best” stock broker – it always is the “Best” stock broker that “suits” you and goes with your preferences. We would also like to mention that make sure you don’t go ahead with a stock broker that is not registered with SEBI. You might get such calls to open a demat account and they might offer you the best of deals. But make sure to do a background check on such stock brokers. The simple way to do that is – ask the caller the official website of the stock broker. Once you browse the website, their NDSL or CDSL license number will be displayed at the bottom or the footer of the website, as a mandate from SEBI.
We hope you get the best of the experiences during your trading.
All the best!
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